On May 1, 2019, Sheridan Company issued $555.000, 11%, 5 year bondsat face value. The bonds were dated May 1, 2019and pay interest annually on May 1. Financial statements are prepared annually on December 31 ~ Your answer is correct Prepare the journal entry to record the issuance of the bonds. Credit account titles are automatically indented when amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit May 1, 2019 Cash 000 Prepare the adjusting entry to record the accrual of interest on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Dec 31, 2019 interest Expense 40700 interest Payable Show the balance sheet presentation on December 31, 2019. (Enter account name only and do not provide descriptive information.) Sheridan Company Balance Sheet December 31, 2019 Current Prepare the journal entry to record payment of interest on May 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit May 1, 2020 Interest Payable Interest Expense Cash 61050 Prepare the adjusting entry to record the accrual of interest on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually! Date Account Titles and Explanation Debit Credit Dec 31, 2020 Interest Expense 40700 Interest Povable 100 Assume that on January 1, 2021. Sheridan pays the accrued bond interest and calls the bonds at 101. Record the payment of interest and redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not Indent manually) Date Account Titles and Explanation Debit Credit Jan 1, 2021 (To record payment of interest) Jan. 1.2021 (To record redemption of bonds)